End of Financial Year Prep 2019 - Businesses & Employers

End of Financial Year Prep - Businesses & Employers

Equipment

If you are thinking of upgrading or purchasing new business-related equipment soon, you can do this before 30 June and include the cost as a deduction on the 2019 tax return
From 7.30pm 2nd April 2019 (budget night) items costing up to $30,000, or $33,000 if you are registered for GST, can be deducted in full in the financial year in which they are purchased as part of the small business instant asset write off scheme. The previous threshold was $25,000 (or $27,500 if you are registered for GST) on items purchased between 29th January 2019 - 7.30pm 2nd April 2019. Prior to this the threshold was $20,000 (or $22,000 if you are registered for GST)
For more details on the extension of the instant asset write-off scheme read our Budget summary here

Review accounts

Write off any bad debts and unpaid accounts before 30 June
Review directors loan accounts and make any adjustments or repayments as needed before 30 June

Prepayments

Consider pre-paying for certain expenses such as rent or insurance, to increase your deductions in the 2019 tax return

PAYG Payment Summaries & STP Reporting

If you have employees, prepare for the issuing of group certificates or PAYG Payment Summaries by checking details for all staff paid in the current financial are complete and up to date before 30 June
From 1 July all employers will need to register for Single Touch Payroll (STP) and start reporting wages, tax and super for staff with each pay run. We will be in contact to discuss the new process for this additional reporting required by the ATO.

Superannuation contributions

If you have employees, bring your staff super contributions up to date
Consider making extra contributions for company directors & proprietors before 30 June within the related contribution caps

Motor Vehicle Logbook

Make sure your car logbook is up to date for any business vehicles for the 2019 financial year
The ATO is focusing on motor vehicle claims and log book records more each year, so if your log book is out of date (over 5 years old) or if your car use or business situation has changed since you last recorded a logbook, we would recommend updating your records with a current logbook of your business car use for 2019
For more information on logbooks please read our article here

Taxable Payments Annual Reporting

If you are in the building & construction, cleaning or courier industry you will need to lodge a Taxable Payments Annual Report (TPAR) with the ATO to report your payments to contractors from 1 July 2018 - 30 June 2019
Make sure details for all contractors paid in the current financial year are up to date, in particular their ABN, business name and address

Stocktake

If you hold stock or record inventory in your business, it's important to conduct a stocktake of inventory as close to 30 June as possible each year
Any adjustments to stock figures can then be included in the 2019 tax return to ensure stock reported matches actual inventory held

Liability limited by a scheme approved under Professional Standards Legislation. Liability is limited in those States where a current scheme applies.

View more articles